The stock markets witnessed a stellar rally as both Sensex and Nifty scaled to fresh record highs, largely dominated by Auto and IT stocks. Benchmark Nifty maintained a strong breakout continuation formation which clearly suggests further uptrend from current levels.
The Sensex was up 452.74 points or 0.75 percent at 60,737.05, and the Nifty was up 169.80 points or 0.94 percent at 18,161.80. About 1602 shares have advanced, 1504 shares declined, and 118 shares are unchanged.
Tata Motors, M&M, Tata Consumer Products, Power Grid Corp and ITC were among the major gainers on the Nifty. Maruti Suzuki, ONGC, Coal India, SBI Life Insurance and HUL were among the big losers.
Gaurav Udani, CEO & Founder, ThincRedBlu Securities, said, "Nifty made a new lifetime high of 18,197 today.It closed at 18,160, up by 170 points since October 13 close. Volumes in Nifty were higher than its average which is a good sign for longs. Nifty has a strong support in the 18,050-18,110 range. Traders can use buy on dips strategy with strict stoploss for 18,250-18,300 as targets".
Shrikant Chouhan, Head of Equity Research (Retail), Kotak Securities Ltd, said, "We are of the view that the short-term chart formation is still in to the long side, but due to an overstretched intraday rally the bulls may take a caution stance between 18,250-18,275 levels. For day traders, 18100 would act as a key support level. Above the same, the uptrend wave will continue up to 18,200-18,275 levels. On the other hand, dismissal of 18,100 could possibly trigger a correction wave up to 18,040-17,980 levels."